Financial Performance - Total net revenues for Q3 2023 were $10.1 million, a decrease of $1.3 million (approximately 11.6%) compared to $11.4 million in Q3 2022[204] - Net revenues for the nine months ended September 30, 2023, were $30.2 million, a decrease of $2.7 million or 8.2% compared to $32.9 million for the same period in 2022[243] - Operating loss for the third quarter of 2023 was $1.9 million, compared to an operating loss of $288,588 for the same period in 2022, reflecting an increase in loss of $1.6 million[234] Revenue Breakdown - Vibativ revenue increased by $0.9 million (approximately 46.0%) to $2.8 million in Q3 2023 from $1.9 million in Q3 2022[204] - Sancuso revenue decreased by $2.0 million (approximately 51.1%) to $1.9 million in Q3 2023 from $4.0 million in Q3 2022[204] - Sancuso revenue for the third quarter of 2023 was $1.9 million, down from $4.0 million in the same quarter of 2022, a decline of 52.5%[237] - Kristalose revenue for the first nine months of 2023 was $12.3 million, an increase of $0.9 million (approximately 7.9%) compared to $11.4 million in the same period of 2022[211] - Vibativ revenue for the first nine months of 2023 was $6.8 million, an increase of $0.8 million (approximately 13.3%) compared to $6.0 million in the same period of 2022[212] - Caldolor revenue for the first nine months of 2023 was $3.3 million, a $0.2 million increase (approximately 6.5%) over 2022[212] Cost and Expenses - Cost of products sold for the first nine months of 2023 was $4.5 million, a decrease of $1.9 million (approximately 29.6%) compared to the same period last year[212] - General and administrative expenses increased to $7.2 million in the first nine months of 2023, compared to $6.7 million in the same period of 2022[213] - Cost of products sold for the third quarter of 2023 was $1.8 million, representing 17.5% of net revenues, an improvement from 19.5% in the same quarter of 2022[238] - Research and development costs for the first nine months of 2023 were $4.6 million, down from $5.3 million in the same period last year, primarily due to a $0.7 million reduction in FDA fees[245] Cash Flow and Financing - Cash provided by operating activities totaled $5.1 million for the nine months ended September 30, 2023, primarily due to non-cash expenses add backs of $4.0 million and a decrease in accounts receivable of $0.9 million[262] - Cash provided by operating activities for the nine months ended September 30, 2022, totaled $4.8 million, driven by non-cash expenses and changes in working capital[218] - Financing activities used cash totaling $5.9 million for the nine months ended September 30, 2023, including $3.3 million for line of credit repayments[250] - The company entered into a new Revolving Credit Loan Agreement with Pinnacle Bank on September 5, 2023, providing up to $25 million, with an initial revolving line of credit of $20 million and a three-year term expiring on October 1, 2026[264] - The interest rate on the new credit facility is based on Benchmark (Term SOFR) plus a spread of 2.75%[264] Strategic Initiatives - Cumberland is pursuing international partnerships to expand its product offerings and has established a network to register and provide medicines outside the U.S.[183] - The company is actively seeking to acquire additional marketed products and late-stage development candidates to enhance its portfolio[188] - The company is working with Nephron to provide interim supplies of a special compounded conivaptan product, expected to be released in Q4 2023[229] Market and Risk Factors - The company is exposed to market risk related to changes in interest rates on cash deposits and the revolving credit facility, with a focus on preserving principal while maximizing interest income[265] - Inflation rates have increased recently, potentially impacting operating costs, particularly in clinical trial and employee-related expenses[42] - The company does not utilize derivative financial instruments to manage exposure to interest rate changes[265] Shareholder Information - The company has a share repurchase program to purchase up to $10 million of its common stock, established in January 2019[257] - The dollar value of shares that may yet be purchased under publicly announced plans or programs is approximately $3.19 million as of September 2023[43] - The company has 14,255,700 shares of common stock outstanding as of November 7, 2023[53] Financial Covenants - The company has a financial covenant requiring the maintenance of a Funded Debt Ratio, determined quarterly[264] - As of September 30, 2023, the company had approximately $53.2 million in federal net operating loss carryforwards, expected to offset income tax obligations in the future[241]
Cumberland Pharmaceuticals(CPIX) - 2023 Q3 - Quarterly Report